Ms. Newlywed
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I recently show an Oprah re-run on paying off debt and I heard the financial analyst say that you should pay off the lowest debt first, no matter the interest. I think this is a smart idea because once you pay off the lowest debt, you can pretned like you are still paying off that debt and add that minimum payment to your other credit cards and get them paid off easier. |
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SEO
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A great idea is to source a loan for consolidation a personal loan, repay credit cards or any other debt by going online. The companies are in a competitive market at the moment and are offering soem great deals to fulfill your situation. |
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Paula M
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If you want to stay motivated for the long haul......pay off the lowest balance first!! You will cherish that small victory.....
You should lower your monthly expenses for the time being.....raise the deductible on your car insurance/cancel the cable/internet......cheaper cell phone/landline basic as can be.....grocery shop w/ coupons......lower the heat.....just for the time being.....
Monthly savings: $60 - cable $20 car Insur
$60 - internet $35 groceries
$15 - utilities
That's $190/mo to go pay down your debt - w/out leaving your HOME!!!!
It's only January - committ to making this year the "attack debt" year.....$10,600/12mos = $884 to be debt free in 12mos - OR $442 to be in control in 24 months!!!! That is doable. |
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Alletery
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Always start with the highest interest rate. If the lowest interest rate card increases your credit limit, immediately transfer over as much of the balances as possible from the higher credit cards. If you find yourself spending again (example: You bring the balance of $4,000 down to $3,000 and now you find yourself spending that $1,000 you have worked so hard to pay off. May I suggest that you tell the credit card company to decrease your credit limit with each payment you make. So when you pay off $100 tell them after processing your payment to also adjust your credit limit to $3,900). It may not be the best way to go but it will prevent you from staying at a standstill with your debts. |
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problemsolver86
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The amount with the highest interest rate should be pay off first the result of paying late will be in the increase interest rate and the amount due will increase after every month. But try using this formula: amount due=principals(amount borrow) X interest X Time( the extended month you have to pay it off. |
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Bad Kitty!
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Have you considered consolidating your higher-interest debt onto a lower interest card? That would help. Be careful of fees, though - read the small print. And DON'T use the card. |
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Jen G
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Paying off debts like this is about 80% behavior modification and 20% mathematics. The math will work better if you start with the highest interest rate and pay the minimum payments on the others, but starting with the lowest balance will give you a "quicker win" and will give you the positive experience to continue with the next one.
For more information about this concept check out www.daveramsey.com. Look under Useful Tools and click on 7 Baby Steps. He talks about this in Baby Step 2.
Good luck! |
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newsoutherngirl
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Pay off the highest interest rate first. There's a big difference between 8.9% and 15.99%. If you have more room left on the 8.9% card try to consolidate everything to that one card, but be sure to watch out for transacation fees and such if you choose to do so (read the fine print first). Good Luck. |
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I will destroy the party
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i would start with the heigh rate card and try to transfer balances to the less intrest one---that will provide extra cash flow to pay of the heigh rate ones first then the one after---good luck---stay away from conslidation companies --cause its more money out of pocket over all |
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rhsaunders
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I agree with first responder. If you can't pay everything off at once, make at least minimum payments on all, and pay off the highest interest rate first. Once all are paid off, make it a habit to pay off every balance in full every month. Although 8.9% is not an outrageous rate by today's standards, the others are ruinous. Once your balances are paid down, you may get offers of credit at rates of 2% or less; I take advantage of these. The hook is that only the balance transfer sum accrues cheap interest; any subsequent charges to the account are at a higher rate, and when you make payments, the payment is credited to the lower rate amount(s) first. So, if you use such a thing, you must not use the account for any other purpose until the cheap money is paid off. |
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Ted
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chances are you have monthly minimum payments. I prefer to pay off $800 at once, then remains only two. keep making required payment and make extra payments to higher interest loan. Paying off loan completely will also help you increase your score. |
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Rena
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You should pay the highest interest rate off first. So, apply extra money to the card with the highest int. rate every month, once that card is paid off then you take the amount of money you were putting towards that and apply it to the next highest int. rate card.
If you are looking to consolidate your cards there is a new concept out for loans, people to people lending. I am a group leader for borrowers. You can learn more here: https://www.prosper.com/public/groups/group_home.aspx?group_short_name=ImProveYourself |
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CS
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You should Pay the higher rate first, so start from $4000, bring that down a bit then go to 800 and pay that as fast as you can, so try to pay the last to Credit Cards at 15.99% and 14.9%..and leave the $5800 until you have paid the other 2 and dont spend anymore that you cannot afford. OR get a credit card at 0.0% and pay of the credit cards Amount that is at the high rated on that Credit Card which you got at 0.0% and you will be fine!! |
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Lisa A
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To get the most out of every penny you can pay, you have to pay off the debt with the highest interest rate first.
The only reason to depart from that is if you need the psychological boost you would get from paying off a card entirely and having one less debt. Then put your money towards the one with the lowest balance. Pay it off and cut up the card. |
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bundysmom
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From personal experience....pay the highest interest card off first. when that card is paid off, take the money you were paying to that card & add that to your payment for next highest interest card...continue on that way until your debt is paid off, and it will be paid off that much faster. |
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